The Cost of Social Media
The Real cost of Social Media
With social media at the height of its popularity, advertisers and companies find it an easy and trendy means of expand their marketing horizons. While many companies may be fooled by the free cost to open a social media account, many fail to consider the expense that goes into running a social media campaign. Do the benefits really outweigh the costs?
“How can you squander even one more day not taking advantage of the greatest shift of out generation? How dare you settle for less when the world has made it so easy for you to be remarkable?” – Seth Godin
The true cost of a social media campaign depends on the size and reach of the campaign itself. These are some factors to consider:
- Staff costs – Once cost often overlooked is the cost of your marketer’s salary. Without a dedicated social media campaign manager you will need to work out the amount of time your other employees will spend maintaining the social media site. Community managers are also need to answer customer inquiries and to maintain a spam-free zone for your clients and customers.
- Advertising – The biggest myth about social media is : “if you build it they will come.” Merely setting up a Facebook page or a twitter account will not guarantee any ROI. It is necessary to add your own advertising to the mix. This can include targeted adds on the platform, adding follow buttons, share buttons on your companies website or email advertisements.
- External Fees – If your campaign is not in-house, do you out source all parts of your social media campaign? If thats is the case then you will need to figure out the breakdown in billing and how you will be charged. Since different agencies have different rates for different strategies, you’ll need to work out if this is a continuous cost and whether it affects you return value.
- Other – While many basic tools for social media are free, more in depth tools, such as tracking, require some escalated cost. Any other technical and creative costs may also be assumed. What happens if you are highly successful? Do you have the backing and budget to expand?
Below is a breakdown of what a fallout social media campaign may cost in a year. The amounts are estimates released by Danny Brown, CEO of Bonsai Interactive.
Considering the potential cost if a target social media campaign, are the benefits really worth the effort and money?
In a recent survey, marketing executives where asked what they felt were the main benefits of marketing through social media. Not surprisingly, only half the respondents felt that ‘low cost’ was a benefit.
So what is the economic potential of fans on Facebook. Syncapse took a look at twenty brands – here are the results:
On average, fans spent an additional $71 on products for which they are fans of, compared to those that are not fans on Facebook.
Twitter has also provided some great case studies. Take DellOutlet, they sought to expand their brand awareness heavily through twitter. Soon after their pages where launched thay had generated over $3m worth of business from followers who clicked on links for purchases.
Sometimes the ability of social media is the ability to create a central forum fopr new consumers. Take the case of the Old Spice brand, a new commercial was launched which generated alot of media attention. The Twitter and Facebook pages became a rallying point for these new adopters.
2700% Increase of Twitter followers – 800% Increase in Facebook followers – 300% Increase in traffice to their website
So do the benefits out weight the costs? Tell me how you get on or if you like give me call and lets chat.